Big players favoured by climate tax
Attempts to make the climate change levy more appealing through incentives may be favouring large companies over smaller ones, according to some accountants.
Government representatives outlined incentives at a CIMA climate change seminar on Friday – such as an 80% discount on the levy obtainable by signing up for energy-saving targets, participating in the climate change agreements, and using alternative energy sources.
But there is a growing sense the initiatives have only a narrow target.
‘The levy incentives are not targeting the majority of industry, they are only targeting the large companies, and not your average company,’ said CIMA member Tom Catton. ‘I believe the softening of the blow will come through but not as fast as many of the industries would like.’
The climate change levy taxes the use of energy for businesses and follows agreements made by the UK in the Kyoto Conference in Japan in 1997, attended by countries from around the world.